House price growth slowed in December to 5.8 per cent new figures from the Halifax due tomorrow will show, as more buyers wrestle with affordability issues.

Economists expect the latest Halifax data to say that although the month-on-month house price growth rate remained flat at 0.2 per cent for December, on an annualised basis it fell from 6 per cent to 5.8 per cent as wages have not kept pace with the sustained surge in house prices, putting homes out of reach of many people.

Although prices have rebounded from their August lull because of the Bank of England cutting the base rate and enacting stimulus measures, as well as the resilience of theUK economy, observers warn that they could struggle over the course of 2017.

IHS Global Insight chief UK and ­European economist Howard Archer said: “The fact that housing market activity is seemingly finding it hard to pick up reinforced our suspicion that it is likely to find life increasingly difficult as 2017 progresses.

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Economists predict that housing price growth will remain flat in 2017

Unusual homes across the globe

Mon, February 6, 2017

Unique and unusual homes from around the world, from tree houses to cube apartment blocks.

"Consequently, we suspect that house prices will come under increasing pressure and will essentially be flat over the year.”

House prices will come under increasing pressure and will essentially be flat

Howard Archer of IHS

Elsewhere, new figures from the ­Office for National Statistics on Wednesday are set to show that Britain’s trade deficit widened in November to £3.5billion.

In October the trade gap narrowed from £5.8billion to £2billion. Economists believe that the trade gap has widened again because of strong domestic demand lifting imports, the record-breaking narrowing that occurred in October and the fact that the devaluation of sterling will take more time to filter through fully to boost exports.

However, Capital Economics chief economist Jonathan Loynes said: “We still expect 2017 to bring about a more meaningful improvement in the trade balance, as exporters and import-competing firms benefit from the competitiveness boost arising from the post-referendum fall in the pound.”